More money for start-up companies in Switzerland

Starting this year, it will be easier for startups that come from the scientific community to get money to start a business. The reason is the revised Federal Law on the Promotion of Research and Innovation.

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The revised Federal Law on the Promotion of Research and Innovation (FIFG) will enter into force at the beginning of January 2023. The revision affects various funding offers from Innosuisse. In an interview, Annalise Eggimann, Director of Innosuisse, explains the changes for funding clients.

Why did it take a revision of the law?

The FIFG revision increases Innosuisse's room for maneuver and flexibility. This is important for our funding activities. For example, national and international innovation projects become even more attractive. Swiss SMEs in particular benefit from this. The revision also provides a basis for targeted new funding opportunities.

What specifically will change in Innosuisse's funding offers from 2023?

There are changes in various offers. Firstly, in innovation projects, the core of our funding, the division between the participating companies' own contribution and Innosuisse's funding contribution will become more flexible. Second, the funding conditions for international innovation projects are changing. Third, we slightly customize the process in start-up coaching. And last but not least, there is a new funding offer for start-ups: the start-up innovation projects.

Let's take all the points in order. How will contributions be divided for innovation projects from 2023?

Let me briefly elaborate: Innovative companies - such as SMEs, large corporations, start-ups - or other private or public organizations develop novel services and products together with Swiss universities and research institutions within the framework of innovation projects . Today, participating companies as implementation partners must bear 50 percent of the direct project costs themselves. Innosuisse covers the other half, thereby covering the costs of the Swiss research institutes. From January 2023, this own contribution by companies for new innovation projects can be between 40 and 60 percent. The project partners will jointly determine the distribution of contributions. Innosuisse will continue to cover only the direct project costs incurred by Swiss research institutions.

In addition, Innosuisse simplifies the calculation of the various contributions in the project budget. The overhead contribution of the research partner is now assessed as a percentage of the total project contribution of Innosuisse and no longer only on the contribution to the personnel costs of the research partner. We will publish an aid to apportionment and calculation in the project application in late fall.

Are the thematic areas for innovation projects restricted?

No, Innosuisse supports projects in all subject areas. This is already the case today. However, the new contribution regulation explicitly mentions both technical and social innovations. This is an important signal of the importance of non-technical innovations. The revised Contribution Ordinance also strengthens the issue of sustainability in Innosuisse's funding.

The funding conditions for international innovation projects will also change from 2023: What can funding customers expect here?

From 2023, Swiss implementation partners, for example SMEs or start-ups, will be able to receive direct funding in the context of international innovation projects, even if the international project cooperation does not take place within the framework of Eurostars or the thematic EU partnerships .

This is common practice abroad. Without this possibility of direct financial support, Swiss companies have so far been at a slight disadvantage compared to their foreign project partners. The innovation means that Innosuisse can also enter into bilateral collaborations with partner organizations in countries such as the USA, Brazil, South Korea, Israel or Sweden and make contributions to direct project costs of Swiss companies in jointly funded projects from 2023. We will communicate more information on contributions in late fall and list them in more detail in the 2023 calls.

What are the innovations in start-up coaching from 2023?

In order to simplify the process and further increase the quality of coaching, from 2023 startups will have to apply to participate in the Core Coaching apply first for Initial Coaching . Only after successful completion of this first phase can start-ups apply for Core Coaching . In the latter, the start-up companies receive support from coaches for a maximum of three years, on the one hand in general terms, and on the other hand with specialist questions in important areas such as intellectual property, financial planning, legal aspects or capital procurement, in order to develop the company further. Now, not only founders as individuals, but also start-up companies as organizations may submit an application. Thus, the coaching services are available for the whole team.

Support for start-ups is being further expanded: Why is the new funding instrument "Start-up Innovation Projects" needed?

Until now, startups that want to develop science-based innovations and bring their innovations to market have not been eligible for direct financial support. However, the revised FIFG will allow Innosuisse to directly fund science-based innovation projects by start-ups from 2023. Such projects with significant innovation potential must prepare the first market entry of the young companies. Projects do not require a research partner. Innosuisse covers a maximum of 70 percent of the start-ups' eligible project costs. The aim is to support start-ups in the difficult phase leading up to market entry and to accelerate this process.

The start-up innovation projects are not covered by the budget for usual innovation projects, but an additional funding budget is available. We will communicate more information about the funding instrument in late autumn, and details about the start-up innovation projects will be published in January 2023.

How do the new start-up innovation projects differ from the Swiss Accelerator projects?

The Swiss Accelerator for Swiss SMEs and startups, which we were already able to launch in spring 2022, is a transitional measure for Horizon Europe. This measure is based on an emergency clause in the revised FIFG. In this context, Innosuisse promotes very innovative projects with direct contributions to Swiss start-ups and SMEs.

From 2023, the Swiss Accelerator will only be open to companies that are already established in the market. Before entering the market, young companies can submit a start-up innovation project. Innosuisse is likely to issue calls for projects for the Swiss Accelerator until Switzerland is again associated with the European Union's Framework Research Program. As soon as Swiss SMEs and start-ups can apply for the EU's EIC grants again, the Swiss Accelerator will be discontinued.

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